2018-9-6 16:29 |
A payment dispute between the cryptocurrency exchange Bittrex and Bitcoin Gold has led to the expulsion of BTG coin from the latter’s platform. Bittrex, not only delisted the coin but also announced that its popular pairings, BTC-BTG, ETH-BTG, and USDT-BTG would be removed from the exchange on September 14. The Bitcoin Gold Organization, on the other hand, stated that they are not responsible for the losses and have detailed their plan to help the exchange meet short-term liquidity. The delisting news hasn’t affected Bitcoin Gold prices.
What Led to BTG’s Delisting?The story goes back to May 2018 when the Bitcoin Gold network suffered a 51% attack. Bittrex asked the developers to pay them 12,372 BTG to cover their losses. The exchange covered part of the losses with its own BTG reserves, but the developers are yet to pay 6000 coins.
The Bitcoin Gold team maintained that they cannot pay the exchange as they are a non-profit organization with no revenue stream. The Bitcoin Gold Organization keeps some funds in Endowment, but they are time-locked for future use. However, the development team did offer a loan to Bittrex on the said Endowment to meet short-term liquidity needs, which the exchange refused.
The developer team reportedly informed the exchange of the 51% attack. The attacker deposited 12,371 BTG from a wallet and traded them for other cryptos. He then went on to double-spend the coins and invalidated the initial deposit. The hack was valued at $18 million, following which, the coin’s prices took a beating on the markets.
The BTG team further claims that they provided Bittrex with the attacker’s wallet address and asked them to raise a confirmation requirement. The exchange was also advised to flag and review unusually big deposits.
Was Bitcoin Gold Affected?In a statement, the BTG developer’s team have detailed their side of the story and maintained that they were not responsible for security within private entities like Bittrex. It explained its decision writing, “those who earn revenue running a private business must manage the related risks and are ultimately responsible for their own security.”
Interestingly, Bitcoin Gold’s price didn’t take a beating after the announcement. Bittrex was not a significant liquidity provider to the coin. BTG holds the majority of its liquidity in Bitfinex, HitBTC, Binance, Bithumb, and Bitinka. It is the 29th largest cryptocurrency in the world with a market capitalization of over $370 million and over 17 million coins in circulation.
Bittrex Bids Farewell to Bitcoin Gold As It Fails to Pay Compensation was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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